Is Jones Lang LaSalle (JLL) Undervalued Following Stronger Third Quarter Earnings?

Jones Lang LaSalle (JLL) recently reported third quarter and year to date results, with higher sales and net income than a year earlier. This gives investors fresh data on the real estate services group’s operational performance.

The latest move in Jones Lang LaSalle’s share price has been sharp, with a 30 day share price return of 26.74% and a year to date gain of 13.17%. The 1 year total shareholder return of 26.79% and 3 year total shareholder return of about 17x indicate momentum building over a longer stretch as investors factor in the stronger earnings print and recent board appointments.

Scan how Jones Lang LaSalle’s earnings-driven jump compares with other real estate and financials stocks on our hand-picked list of 33 high quality undervalued stocks.

After a jump to about US$380 and a share price that now sits between a modest discount to analyst targets and a much steeper modelled fair value gap, where does Jones Lang LaSalle currently appear to be priced on fundamentals?

Most Popular Narrative: 9% Undervalued

On the latest numbers, the analyst consensus Narrative on Simply Wall St points to a fair value of about $416.70 for Jones Lang LaSalle compared with a last close of $380.07. This frames the current pricing as a modest discount once you factor in the growth and risk assumptions behind that estimate.

Rapid growth in annuity-like, recurring revenue streams from Workplace and Project Management, supported by mid to high single digit growth in Real Estate Management Services and high single digit to double digit growth in Workplace Management alongside 25% two year stacked growth in Project Management, supports higher revenue visibility and margin stability that can feed into earnings power.

See why 10 investors see Jones Lang LaSalle as 9% undervalued.

Result: Fair Value of $416.70 (UNDERVALUED)

Still, the analyst story around Jones Lang LaSalle depends on capital markets and leasing activity holding up, and on office exposure not turning into a prolonged drag on fees.

Find out about the key risks to this Jones Lang LaSalle narrative.

Next Steps

Feeling encouraged by the tone around Jones Lang LaSalle but unsure what it really means for you? Act quickly, review the full breakdown, and weigh those potential upsides in context by checking the 3 key rewards.

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